Octopus Energy targets China’s spot power market with PCG partnership

UK energy supplier Octopus Energy has today announced a new joint venture with investor and solutions provider PCG Power to trade clean power across the China’s energy market.

The new company is named Bitong Energy and will help power China’s expanding spot power markets, where energy is bought and sold in real time.

It marks Octopus’ entry into the Chinese renewable energy market and a major step forward in exporting British energy tech overseas.

And Bitong Energy has wasted no time in announcing some ambitious targets. By 2030, it aims to trade up to 140TWh of renewable power a year. This will generate approximately £50 million in annual profits, half of which will flow back to the UK. Within five years, the joint venture aims to generate over £500 million.

Alongside trading, Octopus also will roll out its software to be deployed in China’s battery and renewable fleets.

Greg Jackson, founder and chief executive of Octopus Energy, highlighted the scale of the opportunity in China, driven by the country’s major investments in innovation, energy storage and renewable generation.

“Now there’s a huge opportunity for Britain to succeed as we build the solutions that use these products to cut the cost of electricity. Our partnership with PCG aims to do exactly that – exporting our world-class energy capabilities to grow our economies and speed up the shift to cheaper, cleaner more secure energy.”

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Li Wenxuan, chairman of PCG Power, said: “We deeply value this strategic partnership with Octopus Energy. It marks a defining milestone for PCG Power and underscores our commitment to pioneering the future of energy in China.

“We look forward to working closely together to provide Chinese C&I customers with smarter, more cost-effective, and reliable energy services, contributing to China's power market prosperity and its green transformation.”

This is not the first time Octopus Energy has had dealings in the Chinese market. Last year, the company launched an alliance with Chinese EV mega-manufacturer BYD to scale up V2G technology and bring down costs.

The alliance included the Power Pack Bundle which included a leased V2G-ready BYD Dolphin, a bidirectional Zaptec Pro charger and access to a smart tariff that offers free home charging.

And it seems trade liaisons with China might be expanding. The deal between Octopus and PCG was announced during the UK Prime Minister Keir Starmer’s recent visit to China where frosty economic ties were thawed.

While no specific deals have been confirmed, the countries are willing to collaborate and enter dialogue on various sectors, such as clean energy and green technologies.